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BUSINESSTuesday 12 April 2016
UK government Hertz trims revenue outlook; shares tumble 9%
mulls investing to
save steel plants NEW YORK (AP) — Hertz is than 7 percent. similar commentary by Avis to dropping by 1.5 percent.
cutting its revenue expec- There were implications earlier in the year,” wrote The company had previ-
DANICA KIRKA tations for the year, saying that the industry was under Citi analyst Manish A. So- ously projected growth be-
Associated Press that the rental car market pressure. maiya. tween 1.5 percent and 2.5
LONDON (AP) — The British is suffering from excess ca- Avis had previously predict- Hertz CEO John Tague percent.
government says it is willing pacity. ed flat pricing for the year. says that overflow will likely The company, based in Es-
to put public money into The news sent shares of “Overall, we are not sur- moderate heading into the tero, Florida, expects rev-
a deal to save steel plants Hertz tumbling 9 percent prised to see continued peak summer season. enue per available car day
threatened with closure Monday in midday trading, pricing pressure and over- Hertz Global Holdings Inc. in the first quarter of be-
amid a glut of cheap Chi- and it dragged down rival capacity concerns weigh- now expects U.S. car rental tween 2.5 percent and 3.5
nese imports. Avis Budget Group by more ing on thebusiness given revenue to range from flat percent.q
Business Secretary Sajid Ja-
vid told the House of Com- Wall Street sideways ahead of earnings reports
mons on Monday that the
government was prepared KEN SWEET justed earnings of 7 cents 4.2 percent from a year Low inflation could provide
to co-invest with any AP Business Writer a share, beating the loss ago. a reason for Chinese of-
buyer of the plants Tata NEW YORK (AP) — Stocks of two cents per share that Some investors have said ficials to offer more mon-
Steel plans to sell. These ended Monday’s session analysts had anticipated. they are looking to set etary stimulus to keep the
include the U.K.’s largest mostly unchanged as inves- Later this week the na- aside this quarter’s earnings country’s economy from
steelworks, at Port Talbot tors waited for first-quarter tion’s largest banks will start results. Since many believe slowing further. Asian and
in South Wales, which em- company earnings to start reporting their results, in- the price of oil has found a European markets closed
ploys 5,500 workers. rolling in. Overseas markets cluding JPMorgan Chase, bottom, there is hope that mostly higher.
“I’ve been in contact with gained as investors hoped Citigroup and Wells Fargo. earnings later this year will Benchmark U.S. crude
potential buyers, making for more stimulus in China, Expectations are low for make up for the first quar- oil rose 64 cents to close
clear that the government the world’s second-largest this earnings season. Ana- ter’s expected dismal per- at $40.36 a barrel. Brent
stands ready to help,” Ja- economy. lysts surveyed by FactSet formance. crude, the international
vid said. “This includes look- benchmark, rose 89 cents
ing at the possibility of co- Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, April 11, 2016. to $42.83 a barrel in Lon-
investing with a buyer on Stocks ended Monday’s session mostly unchanged as investors waited for first-quarter company don.
commercial terms.” earnings to start rolling in. In other individual compa-
Javid’s comments under- nies, Hertz Global Holdings
score the importance the (AP Photo/Richard Drew) fell $1.11, or 11 percent,
government has put on to $8.59 after the rental
ensuring the U.K. steel in- The Dow Jones industrial expect a decline of 9.1 “There are signs we could car company cut its full-
dustry survives as a source average lost 20.55 points, percent in earnings from a see positive U.S. earnings year earnings forecast. The
of employment and raw or 0.1 percent, to 17,556.41. year earlier. surprises later this year, driv- company said the car rent-
materials for the nation’s The Standard & Poor’s 500 The decline in earnings is en by a stabilization in oil al industry is suffering from
economy. Tata Steel last index fell 5.61 points, or 0.3 largely tied to the steep prices and a halt in the U.S. too much capacity and
month said it planned to percent, to 2,041.99 and drop in the price of oil from dollar’s rise,” Richard Tur- competition.
sell the company’s opera- the Nasdaq composite fell a year ago, which has nill, global chief investment Yahoo rose 41 cents, or 1
tions in Britain because of 17.29 points, or 0.4 percent, hammered the share pric- strategist for BlackRock, percent, to $36.48 after
losses estimated at 1 mil- to 4,833.40. es of energy companies as wrote in a note to investors. news reports said the U.K.’s
lion pounds ($1.42 million) First-quarter earnings re- well as their profits. Energy Overseas, investors were Daily Mail was interested in
a day. The announcement ports got underway with companies expected to encouraged by economic purchasing the company.
came after Sahaviriya results from aluminum min- report a loss this quarter. If data out of China, which The Daily Mail confirmed
Steel Industries shut its Red- ing giant Alcoa after the energy was excluded from showed inflation remains the reports on Monday.
car plant in October, elimi- closing bell Monday. The the S&P 500, earnings in the tame within the world’s U.S. government bond pric-
nating 2,200 jobs. company reported ad- index would only be down second-largest economy. es were mostly unchanged.
While the government has The yield on the 10-year
resisted calls from unions Treasury note remained
and opposition politicians steady at 1.72 percent. The
to nationalize the Port Tal- dollar edged lower 107.95
bot plant, Javid left open yen from 108.10 yen. The
that possibility in his remarks euro was slightly higher at
on Monday. “We haven’t $1.1409.
ruled anything out; I’ve In other energy commodi-
been clear about that,” he ties, heating oil rose 1 cent
said. “But what we’re also to $1.215 a gallon, whole-
very clear on is that the sale gasoline rose 4 cents to
best way forward ... if you $1.508 a gallon and natural
look at the best steel oper- gas fell 8 cents to $1.912
ators in the world, they are per thousand cubic feet.
commercially run, they’re Precious and industrial met-
privately run. Nationaliza- als prices closed higher.
tion is rarely the answer.” In Gold climbed $14.20 to
a separate development, $1,258 an ounce, silver
Tata agreed Monday to jumped 59 cents to $15.98
sell its European long prod- an ounce and copper
ucts unit to a London in- edged up less than a pen-
vestment firm, safeguard- ny to $2.09 a pound. q
ing 4,800 jobs in England
and France. q
